How will consumers react to competing formats? Historically, they put off purchases, says Wharton marketing professor David Reibstein. A few industry players, such as Hewlett-Packard, Paramount and Warner Bros., have pledged support for both formats. HD-DVD has Universal Pictures in its corner along with Intel and Toshiba.
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The content partnerships favor Blu-ray, which has all of the major movie studios, except for Universal Pictures, backing it along with consumer electronics and computer companies LG Electronics, Panasonic, Samsung, Apple and Dell. HD-DVD holds 15 gigabytes to 30 gigabytes with a maximum of 60 gigabytes. Both camps have signed up major studios and hardware partners, and both hope to use game machines (Sony’s Playstation 3 and Microsoft’s Xbox) to gain critical mass.Īmong the differences: the Blu-ray format holds 25 gigabytesto 50 gigabytes of data with additional capacity possible to 200 gigabytes. Both require consumers to buy new players since they rely on blue lasers to read high-definition discs compared to the red laser in current DVD players. What’s striking about the two formats is that they are relatively similar in their general capabilities. In the middle are a few consumer electronics makers hoping to create players that can play both formats at a reasonable cost. And both sides are well funded and unlikely to cave in. Both formats provide larger storage capacity than the current generation of DVDs and can store high definition full-length movies. In the other corner, with the HD-DVD format, sit Microsoft and Intel along with their allied studios and consumer products companies. In one corner are Sony, most movie studios and a number of consumer electronics makers pitching a technology called Blu-ray. The culprit: Two competing high definition DVD formats and no sign of a clear winner. High definition televisions are expected to be hot sellers this holiday season, but consumers are likely to have a tough time sorting out the newest generation video discs and the players that go with them. The Leader’s Checklist for Board Directors December 21, 2021.Giving Feedback That Works: Plant the Seeds of Confidence January 24, 2022.Get It Done: Two Techniques to Fast-track Your Goals February 28, 2022.Don’t Disappear in the Hybrid Workplace April 19, 2022.
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